Positive signs ahead for Ottawa real estate

While new CREA figures show home sales declining in Alberta and Saskatchewan, cities in Ontario, including Ottawa, continue to see positive sales growth.

“Residential and condo sales combined contributed to an increase in sales, and we are right on par with the January average,” said David Oikle, president of the Ottawa Real Estate Board (OREB).

“Residential two-storey and bungalow properties had the highest concentration of buyers. The possibility of interest rates approaching record lows will provide even more opportunity for homebuyers.”

The falling price of oil and uncertainty in the job market has impacted home sales and consumer confidence across the country.

Sales activity has stalled as people take a wait-and-see approach, said Gregory Klump, chief economist of the Canadian Real Estate Association.

“Buyers are taking a wait-and-see approach right now,” he said. “There’s a lot of uncertainty in the job market and even though we’re seeing prices go up, demand has stalled.”

The figures from CREA, published yesterday, come shortly after TD Economics released a report forecasting that Calgary MLS sales are forecast to dive by nearly 50 per cent.

The report stated: “A significant softening in job markets will set the stage for a second major housing correction in Calgary.”

Sales were reportedly down as much as 24 per cent in Calgary while Edmonton didn’t escape the crunch either, registering a 10 per cent decline, according to CREA.

But in Ottawa, there is a different picture being painted. Things have been stable and positive signs are arising for the country’s capital, which saw some solid numbers in January 2015.

There were almost seven per cent more sales this January compared to January 2014 when just 587 homes were sold.

With a strong commercial market to boot, Ottawa is just one of the many cities in Ontario with a strong outlook for at least the first half of 2015, according to Morguard, which published its own report last week.

Find out more about the median house prices, capital growth and demographics in Ottawa and other Canadian cities with CREW’s free online Investment Hotspot tool.
 

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